If citadel is trading based on its knowledge of yet to be executed customer order information that is not public then they are committing a crime, and there are no exceptions.Here's how Robinhood is raking in record cash on customer trades — despite making it free
Robinhood is raking in more money than ever on customer trades as new investors flood the stock market during the pandemic.www.cnbc.com
Citadel is not paying Robinhood to execute trades for no reason. I am sure it's structured in a legal way, but the effect is the same, they skim off those free trades and pay Robinhood for the privilege. So when Citadel, which is the source of RH's revenue is short and RH's users who don't pay commissions are long a stock, RH is going to serve its actual paying customer.
If citadel is trading based on its knowledge of yet to be executed customer order information that is not public then they are committing a crime, and there are no exceptions.
Pay for order flow is actually a fairly common thing, but not so people can front run orders.
All I’m saying is if they are doing that their entire business model is criminal. There is no legal way to use non-public knowledge of incoming orders from your customers to jump in front and skim money.I am sure they structure it legally, but effect is they are skimming money of Robinhood users, and paying Robinhood for it. They wouldn't pay for order flow if there wasn't an arbitrage opportunity for them in it at the expense of the Robinhood users.
Hedge funds are allowed to buy, sell, short, trade options, do whatever they want with GME. Robinhood users are allowed to only sell GME. Conveniently, that makes money for Robinhood's biggest customer, Citadel.It's sad to see the brokerage firms acting in collusion to stop the trading of a particular stock to help protect the hedge funds from basically losing everything they have because they were stupid. And trying to get the government to intervene because there is market manipulation going on. That's what market makers do all the time, and it's fun to watch something like this. So if buying/selling is restricted that leaves the hedge funds free reign to sit and trade shares among each other at continually lower bids to drive the price down. If the SEC gets involved I only want to see one outcome - the Hedge funds have to cover their position.
It's sad to see the brokerage firms acting in collusion to stop the trading of a particular stock to help protect the hedge funds from basically losing everything they have because they were stupid. And trying to get the government to intervene because there is market manipulation going on. That's what market makers do all the time, and it's fun to watch something like this. So if buying/selling is restricted that leaves the hedge funds free reign to sit and trade shares among each other at continually lower bids to drive the price down. If the SEC gets involved I only want to see one outcome - the Hedge funds have to cover their position.
Amazing how fast a stock can crater when brokerages illegally cartel to prevent purchasing.In the last hour it went from ~$400, down to $120, and is now ~$250.
Sadly RICO would not be possible because the primary purpose of the organization isn’t crime, but it sure sounds like they are opening themselves up to legal problems.Like I said in the other thread, RICO the fuckers.
Not as amusing as Robinhood being named RobinhoodDoes anyone else find it amusing that Gamestop's slogan is "Power to the Players?"
"Payment for order flow was pioneered by Bernard Madoff."All I’m saying is if they are doing that their entire business model is criminal. There is no legal way to use non-public knowledge of incoming orders from your customers to jump in front and skim money.
What you’re referring to is payment for order flow.
Payment for order flow - Wikipedia
en.m.wikipedia.org
Then put your money where you mouth is big guy.Think the rich are out of touch?
Haha definitely."Payment for order flow was pioneered by Bernard Madoff."
Good Housekeeping Seal of Approval right there
This is a concerted effort by the brokerages... That is called RICO violation. Biden should have Berney head an investigation into this.
It might be arguable in court that the primary purpose of a hedge fund is to commit crime, given their track record.Sadly RICO would not be possible because the primary purpose of the organization isn’t crime
Sadly RICO would not be possible because the primary purpose of the organization isn’t crime, but it sure sounds like they are opening themselves up to legal problems.
This is my take as well. I'm watching the ticker bounce all over just for the lulz. I have no GME stock (and no plan to join this game)View attachment 38727
I'm not sure that you can get anything meaningful from the share price apart from this is hilarious.
I just saw a link indicating short losses are estimated at $70B right nowI wish I owned this stock. I think I saw where options expire on 20 million shorted shares tomorrow. The hedge funds have to cover by 4pm as they do not have a choice.
I just have £300 in it just to make it more fun. I put that in with the complete understanding that I was basically burning it.This is my take as well. I'm watching the ticker bounce all over just for the lulz. I have no GME stock (and no plan to join this game)
The funny thing is the real winners of this are the large share holders and institutional investors who aren’t shorters. These people thank your for their free billions. At some point they will sell to realize their astronomical gains and when they do it’s going to be an even wilder ride.